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This paper describes the empirical regularities relating fiscal policy variables, the level of development, and the rate of growth. The authors employ historical data, recent cross- section data, and newly constructed public investment series. Their main findings are: (i) there is a strong association between the development level and the fiscal structure: poor countries rely heavily on international trade taxes, while income taxes are only important in developed economies; (ii) fiscal policy is influenced by the scale of the economy, measured by its population; (iii) investment in transport and communication is consistently correlated with growth; (iv) the effects of taxation are difficult to isolate empirically.

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